Question 979996
 The fixed cost of any order if $7500, the variable cost is $20 per shirt.
 Randy's selling price is $120 per shirt, until a week after the tournament when it will drop to $75 a piece.
 The expected demand at full price is 1500 shirts.
 How much profit will he earn?
:
Find the cost to produce 1500 shirts
c = 7500 + (1500*20)
c = $37500 total cost
l
Find the revenue from selling 1500 shirts
r = 1500*120
r = $180,000
:
profit = reve - cost
p = 180000 - 37500
p = $142,500 profit